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Monday, July 9, 2012

How to budget when you are broke

Some people has been broken due to the uncertainty global economic recently. Naturally people will cut some spending to keep the budget balance. It is the easier option due it does need money. The broke people should consider increasing the revenue.
Here are the steps to budget of your:
1. Decrease "unnecessary" spending such as cinema, cable TV, magazine subscriptions, eating out, and else. You can read news at internet that is free.
2. Decrease your saving post
Saving is good for your future. You will need the money for your kid school or university. However, you need more cash to other important budget post.
3. Prioritize on bill
Do not make your life more difficult by delaying the bill. Pay the bill such as water, electric, and gas. You must be difficult when the electric company shut your electric.
If you still have mortgage debt, you need to pay it or the interest will increase and it is load you. The floating rate interest rate may not good for you.
4. Find other income sources. Be creative people by finding income sources such as blogging, writing, become a volunteer, and else. Some people can get dozen, hundreds, or thousand dollar. Do not just cut your spending but you have to increase the income side.
5. Go to anywhere with public transportation
Being broke, you do not have to own car. Go to anywhere with bus, tram, subway or train that is cheaper than driving the car.
6. Create a tight budget
Trim down some expenses that you can do.
7. Negotiate your credit
Send the letter to the bank or financial institution that you owe to them. The letter content is the proposal to negotiate your credit. Explain that you are broke and you need low interest. It might be difficult to ask bank to reduce the interest due the bank is also difficult to get the profit. Some people also propose for interest cut. However, it is not wrong to try it.
8. Stop leasing or credit
If you have lease car, you can stop the lease. Alternatively, you can ask lease transfer to whoever need lease car.